Keystone XL Pipeline legislation passed in the House, but the liability for oil spills measure was soundly defeated. At first I was shocked. Why? Oil that will flow through the pipeline is called "dilbit," a heavy crude oil derived from tar sands (bitumen) and diluted to flow in a pipe. Dilbit is legally exempt from being taxed under the Oil Spill Liability Trust Fund created by 1980 legislation that states "the term crude oil does not include synthetic petroleum, e.g., shale oil, liquids from coal, tar sands, or biomass." The rationale for defeating this bill is that only XL dilbit would be taxed because current pipelines don't pay this tax. The Oil Spill Liability...

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Keystone XL Pipeline legislation passed in the House, but the liability for oil spills measure was soundly defeated. At first I was shocked. Why? Oil that will flow through the pipeline is called "dilbit," a heavy crude oil derived from tar...

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